The American fee break brings little joy to Lesotho's textile industry


By

Bloomberg

Published


June 30, 2025

A temporary pause about US tariffs has brought little relief to the textile industry of Lesotho, which has suffered dismissals and closed factories after the orders of the United States dried.

Bloomberg

“It's very, very serious,” said Lesotho's Minister of Commerce, Mokhethi Shellil, in an interview on Monday. “American buyers are not ordered because they do not understand what will happen and there is still no clarity of the UST,” said Shellil, referring to the office of the United States commercial representative.

The president of the United States, Donald Trump, slapped 50% of Lesotho in early April, the highest in the world, when he presented reciprocal levies of commercial partners. Subsequently, they were delayed until July 9 and now they could reimpose in the nations that have not negotiated new agreements.

The largest industry in the Kingdom of the Mountain in Southern Africa are textiles and the United States is its largest export market.

He uses 12,000 people and supports 40,000 indirect jobs, selling clothes to American retailers such as Walmart Inc. and Jcpenney.

Last year, exports from the United States totaled $ 237.3 million, around 11% of the gross domestic product of $ 2.12 billion in the country, while US imports in the country were $ 2.8 million, according to the USTR.

Lesotho has held conversations with the USA to reduce the rate, according to Shellil. “We present our second offer of rates that addressed the problems they wanted to address specifically,” he added. “We are waiting to be informed.”

The USTR did not immediately respond to a request for comments by email.

Maseru E-Textile Ltd. is one of the factories that has been affected by reduced orders. About 90% or 1,000 workers are at home, Human Resources Manager Sebinane Maretlane said.

They face an uncertain future if you do not advance in commercial negotiations between Washington and Maseru, he said. “We are waiting to know the Government about what is the result of meetings.”

According to Tsepang Makakole, at least three other factories have also reduced operations and workers.

“The workers are now being sent home and told them that the layoffs are for three months,” Makakole said.

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